Online penetration of automobile in India | Facts & Figures


The automobile industry in India is slowly setting its foot in the online marketplace. With the growing number of e-commerce platforms, many major car companies are taking their businesses online. The automobile online business is blooming better than anyone could have thought of even a few years back.

The online penetration of automobile in India is on the rise year after year. Soon enough, e-commerce would become the dominant marketplace for auto trade. The recent trends in the automobile market have shown a shift of the people considering the online platforms for buying vehicles and auto parts.

The buying and selling of automobile online in India became a priority especially in the Covid year of 2020. Most of the dealerships were shut down resulting in minimum footfall of people in the traditional automobile showrooms. Instead, people relied upon e-commerce platforms for their automobile related purchases.

Automobile and e-commerce in India

The auto industry is one of the most critical industries for India. The reason is the influence of the auto industry on India’s economy. As of 2019, the automobile industry contributed towards 7% of the country’s GDP, which is estimated to increase every year.

Even in the tough COVID times, the automobile industry helped in keeping the economy of India somewhat afloat.

Hence, with the automobile industry penetrating the online marketplace, it would be like combining the best of two worlds!

Some facts related to the online penetration of automobile in India are:

  • About 2% of the total market share of e-commerce platforms is contributed by the automobile industry.
  • The automobile industry had an online penetration of 0.7% in the year 2019.
  • The leading car trade platforms in India witnessed a hike of 175% in the number of inquiries made for used cars since mid 2020.
  • Online platforms are being preferred by people for automobile trade due to the convenience of using them. The seamless service offerings, easy vehicle checks, secure payments, and online transfers of registration certificates are some of the most loved advantages of the online automobile market.
  • A growth of 36% is observed every year in the traffic of visitors by the online platforms.
  • Among the people who prefer buying used cars, 94% of the people research online for purchase or selling a vehicle. This record was registered by Google’s Auto Gear Shift India Report 2020.
  • A rise of 146% is recorded in the number of car loan leads through online platforms.
  • There has been a decrease of 50% in the average number of visits to automobile dealerships.
  • A 30% share in the total number of Hyundai India’s sales inquiries are made through online platforms, as recorded by a Google report.
  • There has been an increase in the Foreign Direct Investment limits by the Government of India. This has brought the attention of many international investors to the online automobile market in India.

The online market of automobiles in India is bringing in a revolution in the way people buy and sell their vehicles. In the coming years, this category is only expected to grow further. The auto industry is going to have limitless possibilities with its online presence.

Factors promoting the automobile online business in India


There are a lot of factors that are encouraging the growth of automobile e-commerce in India.

The growing number of online shoppers

The number of people trusting online shopping platforms is increasing. Lesser people are now uncertain of the benefits of buying online. With the internet becoming more readily available to people, these numbers are constantly growing. Moreover, with the government supporting online methods of payments, e-commerce platforms are becoming more reliable and secure.

The wide variety of options available online

The online marketplace is vast and never-ending. There really are no limitations when one starts buying things online. You get more options than you can choose from. The online penetration of automobile in India in ensuring that the consumers don’t have to compromise on their choices due to unavailability. Users can now choose the exact vehicle that matches their needs and priorities without having to wonder if they have one of their dealerships nearby.

Demand and supply

The consumers of today have already tasted the comfort of getting things delivered to their doorstep through the various e-commerce platforms. What can be better than getting a car delivered to your home without you leaving the house at all! This idea itself is enough for a massive number of people to prefer buying automobile online.

Reduced costs

When the automobile stores go online, a lot of production and other costs are saved due to the disappearance of middlemen. The prices of running the dealerships are also cut down. Hence, the costs of the vehicles decrease substantially enough for the common man. This further encourages the purchase of automobile online in India.

The movement of the automobile industry online is also making way for some other auto-related sectors to start their online services.

The auto loans and insurance industry are already making a place for itself in the online marketplace. Many companies are letting their users apply for automobile loans and get insurance for their vehicles simply using their smartphones. The auto services market is estimated to reach a value of USD 111 billion by the year 2026.

The market share of the auto loans sector is expected to grow from 43% in 2019 to 45.6% in 2026. Additionally, the automobile insurance market is expected to grow at a rate of 9.1% CAGR in the time duration of 2019-2026. All of this growth is the result of the online presence of these industries.

The automotive tyre market and the after-sales market are also budding, thanks to their online platforms.


The online presence of the automobile industry is proving to be a boon for everyone. The industry itself is growing, helping the country’s economy grow with it. It is also enhancing the growth of other related sectors and services. In general, automobile and related purchases are becoming faster and more convenient for the common man.

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